Lilly books double-digit income gains in FY10, Q4

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Eli Lilly has reported double-digit growth in net income for the fourth quarter and full year of 2010, which ended Dec. 31. The company saw single-digit gains in revenue for the same two time periods, mainly due to higher prices.

For the fiscal year 2010, the net income increased 17 percent to $5.07 billion, compared with the fiscal year 2009 net income of $4.33 billion. The company reported that increases in net income and earnings per share were primarily due to higher operating income and improved other income, partially offset by a higher effective tax rate.

For the fiscal year 2010, worldwide total revenue increased 6 percent to $23.08 billion compared with 2009. This 6 percent revenue growth was comprised of a 3 percent increase due to higher volume and a 2 percent increase due to higher prices, while the impact of foreign exchange rates was negligible. Total revenue in the U.S. increased 5 percent to $12.87 billion due to higher prices. Total revenue outside the U.S. increased 7 percent to $10.21 billion due to increased demand, partially offset by lower prices.

According to Lilly, the 2010 total revenue was reduced by approximately $230 million due to the impact of U.S. health care reform.

For the 2010 fourth quarter, the net income that increased 28 percent to $1.17 billion, compared with fourth quarter 2009 net income. Lilly said the increases in net income were primarily due to higher operating income, improved other income and a lower effective tax rate.

In the fourth quarter of 2010, worldwide total revenue was $6.19 billion, an increase of 4 percent compared with the fourth quarter of 2009. This 4 percent revenue growth was comprised of an increase of 3 percent in volume and 2 percent due to higher prices, offset by a 1 percent decrease due to the impact of foreign exchange rates, according to the Indianapolis-based company. Total revenue in the U.S. increased 5 percent to $3.42 billion primarily due to higher prices and, to a lesser extent, increased volume.

Lilly reported that its fourth quarter 2010 total revenue was reduced by approximately $70 million due to the impact of U.S. healthcare reform.

For its antiplatelet agent prasugrel (Effient/Efient), which doesn’t have a previous-year’s comparator, the company said worldwide Effient sales were $47 million in the fourth quarter of 2010, up from $36.3 million in the third quarter of 2010. U.S. Effient sales were $35.8 million, and sales outside the U.S. were $11.3 million. For the full year of 2010, worldwide Effient sales were $115 million. For the 2010 fiscal year, U.S. Effient sales for 2010 were $84.6 million, and sales outside the U.S. were $30.4 million.

Lilly recognizes in revenue its 50 percent share of diabetes drug Byetta's gross margin in the U.S., 100 percent of Byetta sales outside the U.S., and its sales of Byetta pen delivery devices to its partner, Amylin Pharmaceuticals.

For the 2010 fiscal year, worldwide Byetta sales decreased 11 percent to $710.2 million. U.S. Byetta sales for 2010 decreased 16 percent to $559.3 million, while sales outside the U.S. increased 17 percent to $150.9 million. For the full year of 2010, Lilly recognized revenue totaling $430.6 million, representing a 4 percent decrease compared with 2009. For the fourth quarter of 2010, Lilly recognized total revenue of $105.3 million for Byetta, a decrease of 13 percent. 

Worldwide sales of Byetta were $174.6 million in the fourth quarter of 2010, a 14 percent decrease compared with the fourth quarter of 2009, due to competitive pressures in the U.S. and European markets. U.S. sales of Byetta decreased 17 percent to $136.4 million compared with the fourth quarter of 2009, while sales of Byetta outside the U.S. decreased 4 percent to $38.2 million.